Here’s how these two-year colleges upgraded their value

At a time when higher education is struggling to connect with employers, community colleges around the country are undergoing major transformations to better align with their region’s economic hubs.

The Alliance for Innovation and Transformation, or AFIT, is one of several organizations helping to modernize institutions by facilitating collaboration with top industry leaders, such as Apple, Microsoft and Disney.

University Business sat down with executive director Erika Liodice to understand:

• How AFIT’s 60 members—community college and technical college presidents and CEOs—are rethinking their traditional business models, technology and culture.
• How the sector more broadly must tackle changes in student demand and workforce disruption.

Note: This conversation has been edited for brevity and clarity. 

Alcino Donadel: What kind of transformation are you observing in the community college sector right now?

Erika Liodice: Within our membership, we’re seeing a few shifts converging all at the same time. The first is that it feels like the workforce is changing faster than the traditional academic cycles can keep up with. Skills are quickly becoming obsolete, roles are evolving and employers are increasingly valuing adaptability over static credentials.

Today’s learners are different from those of 10 to 20 years ago. Many are working adults, caregivers and career switchers—and they’re expecting education to be flexible to their needs.

Today’s learners are more aware consumers. They expect higher education to be highly personalized and transparent about outcomes that they can expect to achieve, and to see a faster pathway to value. They’re asking more and more: “What is my return on investment here?”

All of those things are converging at the same time, and it’s inspiring community college leaders to rethink everything from their delivery models to their credential structures to the pathways to employment.

Donadel: What are some processes that community colleges are engaging in to keep up with these student demands and workforce changes?

Liodice: One of the most powerful things that I have seen some of our members do is build a practice of strategic foresight to scan the environment for signals of change.

Yavapai College in Prescott, Arizona, saw that a small number of four-year universities were experimenting with offering three-year bachelor’s degrees. This past fall, it launched the Bachelor of Applied Science in Business, a 92-credit degree with a price tag under $10,000.

I think that demonstrates a willingness to question long-standing assumptions about higher education to better align with students’ lives, workforce realities and the cost pressures that so many learners face.

Donadel: It sounds like Yavapai has a formalized unit of leaders tasked with responding to change, which counters the narrative of the inward-facing institution.

On that note, can you describe some of the friction points that community college leaders encounter when collaborating with industry?

Liodice: One of the biggest friction points I see is the tension between need and speed. Industry tends to move fast, while colleges have to thoughtfully navigate accreditation, governance and policy—all of which takes time.

I have seen colleges make these partnerships work by figuring out how to experiment within those constraints. A great example is the Entrepreneurial College at Arizona Western College in Yuma, Arizona.

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It’s a new division that operates outside of the traditional academic structure or standard semester schedule, allowing it to operate as an agile workforce hub that can quickly respond to local business needs in real-time. Students get hands-on learning experience and mentorship opportunities from industry leaders, and they can earn industry-recognized credentials.

While friction points do exist, these kinds of colleges can move faster and partner effectively with industry without compromising quality or accountability.

Donadel: What’s your perspective on the rise of non-degree credentials being offered by two-year colleges?

Liodice: I think they are incredibly relevant offerings, especially if they’re designed intentionally.

Learners can enter the workforce after completing a single certificate and then continue to stack credentials as they go. It’s an approach that is both simple and powerful, because it gives learners flexibility and momentum. They gain the industry-relevant skills they need for a job, and they can build toward higher-level credentials. That’s important for so many of today’s learners because it means they don’t have to step away from the workforce.

Employers also benefit. They gain access to a talent pipeline that has both talent currency and real-world practice.

Non-degree credentials can complement, rather than compete with, degrees because they meet both learners and employers where they are. I don’t think they’re necessarily a replacement for degrees, though.

Donadel: Is there anything that you feel like four-year colleges and universities can learn from the development you’ve observed with community colleges today?

Liodice: I see community colleges becoming innovation hubs and strategic partners in the economic development of their regions. They’re not just responding to workforce demands; they’re actively helping to create and scale new industries.

Florida State College in Jacksonville, Florida, has partnered with the Jacksonville Transportation Authority and the private sector to pilot and operationalize the nation’s first public transportation system with self-driving vehicles.

FSCJ is playing a central role in training the workforce needed to support, operate and sustain self-driving transit technology. By aligning curriculum and talent development with this emerging sector, the college has helped create a regional hub and attracted interest from other AV manufacturing companies. That collaboration has brought significant investment to Jacksonville.

Community colleges and technical colleges are becoming more than educational providers. They’re becoming the heartbeat of these innovation hubs around the country that are creating and scaling new industries.